No 403(b) Match to 401(a) Plan

[Guest AEA]

I heard recently that the IRS had "stated" that a matching contribution for a 403(b) deferral could not be made to a 401(a) plan. Of course, now that I need to look at the "statement", I can not find anything. Does anyone know where or when the IRS said this and how to find this?

Thanks!

[Guest BENATMPLS]

I have submittted two 401(a) plans that are structured solely to match elective deferrals to a 403(b) annuity for IRS determination letters. The IRS approved both plans as qualified and subject to 401(m) non-discrimination tests. I have not heard of any prohibition against such an arrangement.

[Guest AEA]

How recent are your PLRs? I had the impression that the IRS position was fairly recent (ie -2005).

[MWeddell]

There is a watered down version of the contingent benefit rule in the proposed 403(b) regulations. Before that, nothing prevented having other parts of employees' benefits vary based on whether they deferred to the 403(b) plan.

[Guest LBarr]

Any consensus as to the impact of the anti-condition rule under the proposed regs on a matching contribution under a separate 401(a) plan (recognizing that other then the preamble discussion reference to 401(k)(4) there does not appear to be any substantive guidance as to matches under the proposed regs)?

There is a watered down version of the contingent benefit rule in the proposed 403(b) regulations. Before that, nothing prevented having other parts of employees' benefits vary based on whether they deferred to the 403(b) plan.